Chap 4 Flashcards
1
Q
Types of discount
A
Cash and trade discounts
2
Q
Why do businesses give trade discounts?
A
To encourage customers to buy in bulk. Not recorded in the ledgers
3
Q
Why do businesses give cash discounts?
A
To encourage customers to pay promptly. Recorded in the ledgers as discount allowed or discount received
4
Q
Why goods are returned?
A
The goods are damaged
